Strike While the Metal is Hot

 

  

In the world of business opportunities, there is typically a window of opportunity from a timing perspective.  Make a proposal before all the facts are available and risk making a poorly matched offer.  Wait until your competitors have fully explored the opportunity and put forth their best proposal and risk a missed opportunity, or at best play a hurried catch-up game.

 

Of course, due diligence is a vital part of wisdom.  And due diligence must be practiced before making a costly offer.  In contrast, it is important to not practice procrastination and laziness in pursuing viable opportunities.

 

As owners or business managers, we must exercise wise judgment when attempting to buy or sell products and services in the marketplace.  Divorcing oneself from emotional bias is an important first step in practicing wise judgment. We must look at the long-term consequences as well as the short term benefits.  

 

The sequence of presentation to the customer is normally inconsequential.  The quality of the presentation and ongoing communications are the most important aspects for both parties.

 

As a seller, one must be fully aware of all responsibilities and risks associated with providing a product.  The following list may be of some assistance:

 

•        Is the customer financially solvent?

•        Is the customer willing to meet your payables terms?

•        How much post sale service will the customer demand?

•        Is the customer prone to make unreasonable demands?

•        Will the customer share the information necessary to assist with the proper use of your product?

•        Will the customer provide a viable contact to communicate with regarding post sale service?

 

The buyer should also have a systematic approach to selecting a supplier.  Some of the qualifications and questions necessary in the selection process might be as follows:

 

•        Is the supplier financially solvent?

•        Is the supplier technically competent?

•        How long has the product been in production?

•        Availability of back up inventory or parts

•        Fair pricing – Valid for what period?

•        Suitability of product for buyer’s application?

•        Geographic locations

•        Commitment to product support?

•        Quality of tech support available?

•        Response time for product support?

 

During the late 1990’s, I was a first-hand observer in which procrastination cost a company an entire sub-market for its products.  The supplier had a majority share of this multi-million-dollar sub-market. The client company was instituting new engineering standards that required a lower tolerance performance for the primary product that the supplier manufactured.  The new criteria were clearly communicated back to the supplier from their distribution network and sales force.  While the supplier delayed making a move to a new technology, their competitor stepped in and literally ran the table on them.  Seven years later, the old supplier was slowly making inroads on the more assertive competitor.  But then it was the competitor who was the incumbent.  

 

The point remains, active pursuit of viable business opportunities must be untaken while that opportunity exists.  This is especially true for the seller.  Don’t procrastinate past the point where your offering is not given full consideration